This PPT slide, part of the 69-slide Corporate Strategy Primer PowerPoint presentation, presents a framework for understanding the relationship between resources and corporate structure, referred to as the Resource Continuum. It emphasizes that resources are fundamental to a corporation's strategy, acting as a unifying thread that influences various organizational decisions. The layout is divided into several dimensions: the nature of resources, scope of businesses, coordination mechanisms, control systems, and corporate office size.
The nature of resources is depicted on a spectrum from general to specialized. Companies with specialized resources tend to operate within a narrower scope of businesses, indicating a focused strategy. This suggests that resource specialization can limit the range of opportunities available to a corporation.
Coordination mechanisms are highlighted as critical for resource transfer. The more general the resource, the easier it is to deploy across different business units. However, sharing resources necessitates comprehensive coordination efforts, often involving cross-unit committees to manage conflicts and trade-offs effectively. This indicates that while resource sharing can create synergies, it also requires careful oversight to maintain accountability among business units.
Control systems are essential for ensuring that resource allocation aligns with strategic goals. The slide suggests that the operational nature of these systems can vary based on the generality of resources. Finally, corporate office size is inversely related to resource generality; a more general resource base allows for a smaller corporate office, streamlining decision-making processes.
Overall, this framework provides valuable insights into how resource configuration impacts corporate strategy and operational efficiency. It encourages executives to consider the implications of resource specialization and sharing on their organizational structure and decision-making processes.
This slide is part of the Corporate Strategy Primer PowerPoint presentation.
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Strategy Development Growth Strategy Corporate Strategy Organizational Structure
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